MANAGEMENT

Report on British Petroleum (BP)

Table of Contents

Introduction2

Discussion3

Operations of BP3

Business Segments of BP3

Operations of BP by Location3

United Kingdom and Republic of Ireland3

United States5

Other countries6

Energy Markets7

Prices of Crude Oil8

Prices of Natural Gas9

Energy Demand and Long-Term Growth10

Conclusion11

References13

Report on British Petroleum (BP)

Introduction

British Petroleum (BP) is a multinational oil and gas company that is headquartered in London, UK. BP is the fourth largest oil and gas company and third largest energy producing company in the entire world according to the survey conducted in 2011 in terms of its revenues earned during the year. The company is one of the best companies that are considered as “super majors” in oil and gas sector. British Petroleum is operating in all the fields of oil and gas industry and it is vertically integrated. The major fields that are covered by BP for oil and gas are refining, production, marketing, distribution, trading, power generation and petrochemicals. The company is also working effectively on production of renewable energy in wind power and bio-fuels. British Petroleum is working in more than 80 countries and is producing more than 3.4 million barrels of oil per day and it is having more than 21,800 service stations all around the world.

BP is the second largest producer of gas and oil in United States of America; therefore it is having the largest division over there. According to the survey conducted in 2011, British Petroleum is having confirmed commercial reserves of more than 17.75 billion barrels of oil. The company is primarily listed on the London Stock Exchange and it is an important part of FTSE 100 Index. As per the annual reports and corporate briefings of BP, the company is having a market capitalization of £81.4 billion. BP is the fourth largest company that is listed in the London Stock Exchange and it is also listed secondarily in the New York Stock Exchange.

In 1978 the company has major control over the Standard Oil of Ohio. During the period of 1979 and 1987 the British government started privatization of BP Company and it was done in various stages. In 1998, British Petroleum got merged with Amoco and it also acquired Burmah Castrol and ARCO in 2000. The company has also played an active role in various major safety and environmental incidents that mainly includes Deepwater Horizon Oil Spill, which was the greatest accidental release of oil into the marine waters. The company faced various political, economical, societal and nationwide challenges but still it managed to maintain its distinctive position in the oil and gas sector.

Discussion

Operations of BP

The operational network of British Petroleum Company is extended to more than 80 countries all around the world. The company was having a total of 83,400 employees in January 2012 in its various service stations and offices (Yevgrashina, 2012).

Business Segments of BP

The company has organized its business segments in three parts BP Downstream, BP Upstream and BP Alternative Energy that is a growing segments and it is getting extra attention as compared to other two ...